Small business sentiment dipped in September

Optimism among small business owners in the US dropped 2 points in September, falling to 98.8 from 100.8 in August, according to the National Federation of Independent Business’s latest sentiment index.

September’s dip marked the first decline of its kind in three months, though the NFIB noted the optimism index “remains above the survey’s 52-year average of 98.” Amid the government shutdown, investors, economists, and policymakers are turning to alternative surveys and reports to get a read on the current state of the economy.

For a sense of how small business owners are feeling, supply chain woes and inflation concerns were some of their most pressing issues in September, per the report. Nearly two-thirds of respondents said supply chain disruptions “were affecting their business to some degree.”

As a result, 31% of owners anticipated raising prices in the next three months, marking a 5 point increase from August, according to the NFIB.

“While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges,” Bill Dunkelberg, the NFIB’s chief economist, said in a statement.

Small business owners are also dealing with the elephant in every boardroom: uncertainty. The NFIB’s uncertainty index for September climbed seven points, moving up to 100. That marked “the fourth-highest reading in over 51 years,” the organization noted.

“Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations,” Dunkelberg said.

They’re not too confident about the immediate future, though: The share of small business owners expecting better business conditions dropped 11 points month over month to 23%.

Best of luck to Main Street.